Following a breakout of the 55-, 100– and 200-hour SMAs early on Tuesday, downside risks prevailed and thus pushed the EUR/USD exchange rate down to the weekly S1 at 1.1840. Its subsequent movement was sideways.
The pair is gradually moving towards the bottom boundary of a five-week channel down. This line is likewise located near the 2018 low of 1.1720. It is likely that the pair still edges lower in this session, possibly down to the weekly S2 at 1.1760; however, the aforementioned yearly low should not be surpassed.
By and large, the rate’s movement should nevertheless be tended northwards during the following week. In case this bullish reversal occurs today, the pair should remain below the 1.19 mark, as it is guarded by all three SMAs.
